CIT(A) deleted addition on unaccounted business income, ...

CIT(A) deleted addition on unaccounted income, accepted retraction of statement, agreed cash payment from surplus, not suppressed sales.

Case Laws Income Tax

July 10, 2024

CIT(A) deleted addition on unaccounted business income, accepting assessee's retraction of statement recorded u/s 132(4). CIT(A) agreed cash payment of 60 crores by assessee and group entities, over banking channel payment of 50 crores, was from surplus cash, not suppressed sales. CIT(A) observed no legal requirement to produce evidence only during seizure, relying on judicial precedents. CIT(A) elaborated on transactions, noting taxing impugned amount as unaccounted income would lead to double taxation. CIT(A) reconciled cash found during search with completed books, supported by GST returns and bills/vouchers. CIT(A) analyzed sales data from GST returns and books, finding no abnormality. CIT(A) accepted retraction by key person, backed by audited books and reasons. AO's conclusions were incomprehensible, brushing aside substantial evidence without cogent reasons. Statement alone cannot constitute incriminating material u/s 153A. CIT(A)'s decision was justified.

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CIT(A) deleted addition on unaccounted business income, ...

CIT(A) deleted addition on unaccounted income, accepted retraction of statement, agreed cash payment from surplus, not suppressed sales.

Case Laws Income Tax

July 10, 2024

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